Rental growth boosts Goodman Property

Rental growth and contributions from recent development deals helped Goodman Property Trust raise its after tax profit by $2.5 million in the six months to September 30.

The property investor and developer made a profit of $31.6m, a 9 per cent jump from the same time the year before. Net property income went up 4 per cent to $57.6m, while distributable earnings before tax rose 2 per cent to $41m.

Chief executive John Dakin said the increase was mainly driven by the contribution from recent developments and modest rental growth, partly offset by the impact of asset disposals.

Goodman owns $1.6 billion of industrial and commercial property, including business park estates and land banked for future development.

Goodman also announced it will buy the balance of Highbrook Business Park from investment partners Goodman Group and Fisher for $186.6m.

This deal is subject to unitholder approval to be sought at an extraordinary meeting in Auckland on December 7.

The company is undertaking a private placement to institutional, wealthy and experienced investors today to raise $60 million of equity to part fund the acquisition. The issue price of $1.01 represents a 4.4 per cent discount to the volume weighted average price over the five preceding trading days, the company said.

The trust also proposes to seek $20m from New Zealand resident investors through what it calls a Unit Purchase Plan. Eligible unitholders will be able to purchase unit parcels with values from $1,000 to $15,000. The issue price of the Unit Purchase Plan will be confirmed to the NZX on December 19.